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Rowan picks up Petrobras jackups

Rig operator Rowan Companies has purchased two LeTourneau Super 116E jackup rigs, the P-59 and P-60, which were both delivered new into service in 2013, in a public auction from a subsidiary of Petrobras for US$38.5 million per unit.

As previously reported in May 2017, Rowan was the high bidder in a Petrobras public auction with a bid price of $30 million per rig. While the high bid was not accepted by Petrobras, after negotiations, both parties agreed to the revised price. The Company intends to mobilize these jackups to the Middle East from their current location in Brazil in late Q1 2018.

Rowan also announced it has sold one rig for scrap and cold-stacked a second.

The jackup Cecil Provine, which was built in 1982 and had been based in the US Gulf of Mexico, was sold in November 2017 for scrap. The Rowan Gorilla IV jackup, in service since 1986, was cold stacked following the conclusion of its latest contract, for Arena in the US Gulf of Mexico.

"We consider this purchase an opportunistic investment, made near a cyclical low, at a highly attractive price," says Tom Burke, President and CEO, at Rowan. "Since mid-2015 we have divested five older jackups (Rowan Louisiana, Rowan Juneau, Rowan Alaska, Rowan Gorilla II and Rowan Gorilla III). The addition of these two modern rigs will help renew the Rowan fleet and increase the company's future earnings capability.

"We are very familiar with the design and construction of these rigs. We are confident in our ability to integrate these jackups into our existing fleet to generate strong financial returns from this investment and deliver safe, efficient and reliable operations to our customers."